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Friday, August 6, 2010

Crude Oil Daily Technical Outlook For Friday Morning

Crude oil was lower due to profit taking overnight as it consolidates some of the rally off July's low. Stochastics and the RSI are overbought and are turning neutral to bullish signaling that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 78.70 would confirm that a short term top has been posted. If September extends the aforementioned rally, the reaction high crossing at 84.50 is the next upside target.

First resistance is Wednesday's high crossing at 82.97
Second resistance is the reaction high crossing at 84.50

Crude oil pivot point for Friday morning is 82.02

First support is the 10 day moving average crossing at 80.09
Second support is the 20 day moving average crossing at 78.70